PWLB briefing

Morning Rate Update

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PWLB rates reset sharply lower this morning, with 6–7bp declines across the entire curve as gilt yields fell.
⚠ RATE ALERT — AM reset: PWLB rates down 6–7bp across all maturities, tracking a notable rally in gilts after recent volatility.

PWLB curve drops 6–7bp as gilts rebound from recent highs

PWLB Snapshot

Tenor Rate Chg
1y 5.27% -6bp
3y 5.53% -7bp
5y 5.72% -7bp
10y 6.19% -6bp
25y 6.78% -6bp
50y 6.57% -7bp

Parallel downward shift: all maturities down 6–7bp.

What Moved

  • Broad-based rally — The entire curve, from 1y to 50y, dropped 6–7bp at the AM reset.
  • No material curve twist — Moves were consistent across short, medium, and long maturities.

Context

  • UK macro data quiet — Only low-impact PMI final readings released this morning (Composite and Services both 52.5, in line with forecasts).
  • News flow subdued — No major UK macro or gilt-specific headlines; broader market commentary notes a rebound in gilt prices after recent volatility.

Calendar Events

Today's Releases

  • S&P Global Composite PMI Final — Actual: 52.5 (Forecast: 52.5, Previous: 52.2). In line with expectations, no impact on gilts.
  • S&P Global Services PMI Final — Actual: 52.5 (Forecast: 52.8, Previous: 52.1). Slightly below forecast, but not market-moving.

Remaining Today

  • 15:00 USD ISM Services PMI — Forecast: 54.3

Next 48 Hours

  • Fri 04 Sep 13:30: USD Non Farm Payrolls — Forecast: 58K
  • Fri 04 Sep 13:30: USD Unemployment Rate — Forecast: 4.10%
⚑ Treasurer's Note — The PWLB curve has dropped 6–7bp across all maturities at this morning's reset, marking a clear reversal after recent highs. The move is broad-based, with no single tenor spared. This brings rates back from the brink but leaves them well above levels seen earlier in the summer. If you are waiting for the next reset, keep in mind that this morning's move was driven by a rebound in gilts amid quiet UK data and news flow.

This commentary is provided for information only and is not financial advice. Please verify rates directly with PWLB or official sources before acting.

Gilt Edge Advisor — still here after more resets than a council laptop.

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